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Houston – The energy agenda of the president of Donald Trump, the officials, Donald Trump, made clear the executives of oil, gas and mining this week that they have an ally in Washington that is intended to make it as easy as possible for them to drill in federal lands and waters.
Interior Secretary, Doug Burgum, told executives gathered for the world’s largest energy conference that the Trump administration does not see climate change as an existential threat. The Secretary of Energy, Chris Wright, said that the growing world temperatures are simply a byproduct of the development of the country’s national resources to support economic growth and national security.
Burgum leads the recently established National Council of Domain of Energy of Trump and Wright serves as its deputy in the inter -institutional body responsible for promoting production. Burgum was effusive in its praise to the oil and gas industry during the comments delivered in Ceraweek by S&P Global Conference.
“I will share two words that I do not think I have heard from a federal official in the Biden administration for the last four years. And those two words are thanks,” said Burgum, who previously served as North Dakota governor, a state that produces 1.2 million barrels of oil per day.
Burgum relied on his experience as an executive of the software company to present his vision of the role of the Department of the Interior. The department under its leadership considers that companies that develop resources in federal lands such as “clients” that contribute income to the “balance” of the nation, Burgum said.
“If someone was sending me income, they were not the enemies. They were the client,” Burgum said. The administration loves anyone who wants to reap wood, critical minerals, pastera or produce oil and gas in the federals, said the Secretary of the Interior.
Royalties sent by lease contracts in federal lands will help the United States pay their national debt and balance the budget, Burgum said. “You are the client,” the Secretary of the Interior told executives.
The value of the abundant natural resources of the nation far exceeds its debts of $ 36 billion, Burgum said. If financial markets understood the value of the natural resources of the United States, the long -term interest rate to 10 years would decrease, Burgum said.
“Interest rates at this time are one of the biggest expenses we have as a country,” Burgum said. “Then, one of the things we have to do is unleash the balance of the United States, and President Trump is helping us do that,” he said.
Burgum criticized the Biden administration approach in climate change as an “ideology.” He said the Trump administration sees that Iran acquires a nuclear and China weapon winning the artificial intelligence career such as the two existential threats faced by the United States instead of global warming. Wright said Biden had a “myopic” and “religious” belief in reducing emissions that harm consumers.
Burgum and Wright ruled out policies that support a transition from fossil fuels to renewable energy, arguing that wind and solar energy will not be able to meet the growing demand for energy in the coming years of artificial intelligence and reindustrialization.
“There is simply no physical form that wind, solar energy and batteries can replace the innumerable uses of natural gas. I have not yet mentioned oil or coal,” Wright said at the conference. Wright previously served as CEO of Oilfield Services Company Freedom energy And a Member of the Board at the Nuclear Startup Ok hey.
Oil executives see allies in Washington
Oil executives are excited about the change of administrations in Washington, returning the praise they received from the Trump energy team during the week.
Conocophillips The CEO Ryan Lance said that Wright and Burgum “understand the business”, describing them as the best energy team that the United States has seen in decades. Total energy The CEO Patrick Pouyanné said it was “impressed by the quality of our counterparts.” Chevron The Mike Wirth CEO said the industry is “seeing that some reality returns to the conversation.”
“For years, my message has been, we need a balanced conversation about affordability, reliability and environment, and focusing only on the climate leads us to ignore the first two,” Wright said.
All executives referred to the Gulf of Mexico as the Gulf of America, after Trump’s executive order to change the name of the water body. The president issued an order on the first day to repeal the biden prohibition of drilling at the high seas at 625 million American coastal waters.
The BP CEO, Murray Auchincloss, briefly slipped before corrected by discussing how the generative AI is helping with exploration: “We begin to do this in the Gulf of Mexico, the United States, and we also spread that to other nations.”
But Trump’s calls to “drill, baby, drill” face the reality of the market. The CEO of Chevron and Conoco said that US oil production will probably be stabilized in the coming years after reaching new records under the Biden administration.
“Pursuing growth for the good of growth has not proven particularly successful for our industry,” Wirth said. “At some point, it has grown enough to start moving towards a plateau, and must generate more free cash flow, instead of only more barrels.”
Lance sees that the production of oil in the United States is poured at the end of this decade and then slowly decreases.
“Maybe it’s time to explore the Gulf of America again,” Pouyanné said. “The new administration is opening the Gulf. It has slowed after Macondo’s drama,” he said, referring to Deepwater Horizon’s oil spill, the largest in the history of marine drilling operations.
American oil producers are scheduled to meet with Trump next week, he said in the American Petroleum Institute Group of the Industry.
